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Navy contract trumps fears over Babcock’s outsourcing prospects

One of Britain’s biggest defence companies has been selected as preferred bidder for a £360 million contract with the Royal Navy, raising investor hopes of a recovery in defence and outsourcing spending.

Babcock is in line to provide support services for two classes of navy vessels, including supplying spare parts and working with suppliers to manage systems.

The potential seven-year contract for Queen Elizabeth-class aircraft carriers and Type 45 destroyers is a significant boost for Babcock, which operates in an outsourcing market that has suffered a slowdown in public and private contracts since Britain’s European Union referendum last June.

Babcock has been optimistic, however, that being in the defence industry would help to insulate it from the downturn, particularly since the election of President Trump…

Article source: http://www.thetimes.co.uk/article/navy-contract-trumps-fears-over-babcocks-outsourcing-prospects-bf3hr7p0f

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